Hashem,
Are you still holding VLSI? I was wondering if you could plug the new sales guidance into your model and see what you come up with. I used sales down 10% (worst case according to the company), COGS (62% of sales), R&D (20% of sales), G&A (18% of sales), and tax bracket (27%).
Under this scenario, VLSI would eke out a 1.1 cent operating profit. Obviously they are going to report a loss with the special charge, but I don't think the market will worry about that. As a point of comparison, the actual numbers last quarter were COGS (62%), R&D (19%), G&A (16%), tax bracket (27%). If they kept R&D at 19% of sales and G&A at 16% of sales, they would have an operating profit of 8 cents. That would look much better.
In absolute terms, the proforma looks like this:
Sales: $124,030,000
COGS: $76,889,000
R&D: $24,806,000
G&A: $22,325,000
EBIT: $0
Interest, net: $700,000
EBT: $700,000
Income tax: $189,000
Net income: $511,000
Shares: 46,000,000
EPS: $0.01
Thanks,
Dan |
